Pinnacle West Capital Corp (PNW)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,734,010	1,621,480	1,667,770	1,666,350	1,535,460
Revenue	US$ in thousands	4,695,990	4,324,380	3,803,840	3,586,980	3,471,210
Gross profit margin		36.93%	37.50%	43.84%	46.46%	44.23%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,734,010K ÷ $4,695,990K
= 36.93%

The gross profit margin of Pinnacle West Capital Corp. has exhibited a declining trend over the past five years, dropping from 69.97% in 2019 to 61.83% in 2023. This suggests a decrease in the percentage of revenue retained after accounting for the cost of goods sold. The decline in the gross profit margin may indicate challenges in effectively managing production costs or pricing strategies. Further investigation into the company's operational efficiency, pricing structure, and cost control measures is recommended to address the decreasing trend in gross profit margin.